Image credits: Volvo Group
Rivals Volvo AB and Daimler Trucks are teaming up to produce hydrogen fuel cells for long-range trucks, which the companies say will cut development costs and increase production volumes. The joint venture, called “cellcentric”, aims to bring large-scale production levels of hydrogen fuel cells to Europe by 2025.
While the two companies are collaborating to produce fuel cells through a central project, all other aspects of truck production will remain separate. The location of the next Gigafactory will be announced next year. The companies also did not specify the production capacity of the prospective factory.
Even as Volvo AB and Daimler Trucks used ambitious terms like “gigafactory” — a term popularized by Tesla for its gigafactory capacity — executives added some cautionary caveats to their goal. Executives noted at a press conference that Europe’s hydrogen economy will depend in part on whether the EU is able to produce a policy framework that leads to further cost reductions and investment in refueling stations and other infrastructure. In other words, manufacturers like Daimler and Volvo looking to invest in hydrogen face a “chicken and egg” problem: boosting fuel cell production will only make sense if it occurs in conjunction with building a hydrogen network, including refueling stations. Pipelines to transport hydrogen and renewable energy resources to produce it.
“In the long run, I mean this has to be a business like anything else,” Lars Stenqvist, Volvo’s chief technology officer, told TechCrunch. “But in the first wave, there must be support from our politicians.”
In cooperation with other European truck manufacturers, the two companies call for the construction of hydrogen refueling stations across Europe of around 300 by 2025 and around 1,000 by 2030.
Swedish and German carmakers have suggested that policies such as a carbon tax, incentives for CO2-neutral technologies or an emissions trading system could all help ensure cost competitiveness against fossil fuels. Stenqvist noted that heavy trucking will only make up a small portion of hydrogen demand, about 10%, while the rest will be used in industries such as steel manufacturing and chemical industries. This means that pressure for pro-hydrogen policies is likely to be heard from other sectors as well.
One of the biggest challenges facing the new project is working to reduce the inefficiencies associated with converting hydrogen into electricity. “That’s what engineering in trucking is all about, which is improving the energy efficiency of the vehicle,” Stenqvist said. “This has always been in the DNA of engineers in our industry…energy efficiency will be even more important in an electrified world.” He estimated that the cost of hydrogen would need to be between $3 and $4 per kilogram to make it a cost-effective alternative to diesel.
Volvo is also making investments in battery electric technologies, and Stenqvist said he sees potential use cases for internal combustion engines (ICE) powered by renewable biofuels. He agrees with Bosch executives who said earlier this month that they see a place for ICE in the future. He said: “I am also convinced that there is a place for combustion engines for a long period of time, and I do not see any end, and I do not see any date for the retirement of combustion engines.”
“From the political side, I think it would be completely wrong to ban technology. Politicians shouldn’t ban technologies, they shouldn’t approve them, they should point the direction, they should talk about what they want to achieve. And then it’s up to us as engineers.” To find technical solutions.
